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North Carolina AG Permanently Enjoins Debt Settlement Business

Collection Industry News

On May 26, 2022, the North Carolina Attorney General (NC AG) announced that it obtained a default judgment against a California-based debt settlement business, and its proprietor. Specifically, the NC AG alleged that the defendants unlawfully collected up advance ?fees Source: site. View source.]. View source.].

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CFPB Takes Action Against A Debt Settlement Firm For Directing Consumers To High-Cost Loans

Collection Industry News

On April 13, the CFPB entered into a preliminary settlement with an online debt-settlement company for allegedly violating the CFPA’s prohibition on abusive acts or practices and failing to clearly and conspicuously disclose total cost under the Telemarketing Sales Rule. Source: site.

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CFPB And FTC Continue To Take Action Against Debt Settlement Companies

Collection Industry News

On April 29, the CFPB filed a proposed order in federal court seeking final judgment against three California-based defendants for engaging in unlawful fee-charging practices and deceptive telemarketing. The post CFPB And FTC Continue To Take Action Against Debt Settlement Companies appeared first on Collection Industry News.

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You’re in Debt: 9 Terms to Know

The Kaplan Group

FDCPA ( Fair Debt Collection Practices Act). The Fair Debt Collection Practices Act (FDCPA) is a federal law that restricts the behavior of collection agencies when they are attempting to collect money from individuals. The law does not apply to collecting from businesses. Debt Settlement Services.

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Court Finds Letter Warning Consumer of Tax Consequences for Debt Forgiveness Does Not Violate the FDCPA

Troutman Sanders

28, 2021) , plaintiff Roberta Bordeaux, on behalf of herself and a class of similarly situated persons, asserted that defendant debt collector LTD Financial Services LP (LTD) violated the Fair Debt Collection Practices Act (FDCPA) by sending collection letters, referencing potential tax reporting consequences of accepting a debt settlement.

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Freedom Debt Relief Sued for Misleading Consumers

Debt Free Colorado

Offers for debt settlement and debt repayment plans often sound too-good-to-be-true. government agency that makes sure banks, lenders, and other financial companies treat you fairly”, Freedom Debt Relief’s offers actually were too-good-to-be-true. settlement providers, by contacting your creditors directly.

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Passive Debt Buyer May Delegate Dispute Communications to Third Party

Consumer Financial Services Law

A New York District Court recently addressed the issue of whether the FDCPA requires passive debt buyers to personally register disputes or whether they can delegate that obligation to their third party debt collector/servicer. Passive debt buyers purchase debt but retain third parties to service and collect the debt.